Cafe Outspan Vietnam Limited (Vietnam)

Café Outspan Vietnam Limited is one member of Olam International Limited (Singapore) - a global company with operations across 60 countries. This company is a leading food and agri-business, supplying food ingredients, feed and fibre to thousands of customers worldwide, ranging from multi-national organizations with world famous brands to small family run businesses. In Vietnam, the subject specializes in manufacturing and exporting instant coffee products, including spray-dried instant coffee, freeze-dried instant coffee, instant coffee, frozen concentrated coffee solution and related products. About 70% of coffee is purchased locally; the remaining is imported internationally. Meanwhile, most of the products are exported to Singapore and sometimes to the Indian market.Regarding the situation of exported coffee, Mr. Do Ha Nam - Chairman of Intimex group, Vietnam's largest coffee export group, commented on the 2023-2024 coffee crop and the export trend of the coffee industry in 2024 as follows: New crop coffee is being offered for sale at 60,000 VND/kg, delivered in December 2023 and January 2024. This price is much higher than the previous crop due to the large purchasing demand from export and FDI enterprises. It is expected that this asking price will continue to increase until April 2024 because people will limit selling. Domestic prices will continue to stand around 60,000 VND/kg, possibly increasing after the Tet holiday but it will be difficult to increase. The area of coffee growing areas is continuing to decrease, especially in Dak Lak and Dak Nong provinces. Harvest is later than usual due to rain in the main growing areas.Currently, the world market is tightening standards for coffee. The EU market is tightening import regulations and traceability requirements - anti-deforestation (EUDR) for coffee products. Therefore, businesses in the coffee industry supply chain, especially the role of exporters, must increase their ability to adapt and act to meet market standards and regulations. And, this directly affects the export output of the 2023-2024 crop and especially from the 2024-2025 crop onwards, when the regulations are expected to officially apply.According to data from the General Department of Customs, in the first 11 months of 2023, Vietnam's coffee exports reached nearly 1.4 million tons, worth more than USD 3.5 billion, down by 13% in volume and down by 2.5% in value compared to the same period in 2022. Notably, the average export price of Vietnamese coffee in November 2023 reached 3,148 USD/ton, up by nearly 33% over the same period last year. Accumulated for the first 11 months of 2023, Vietnam's average coffee export price is estimated to reach 2,570 USD/ton, up by 12% over the same period in 2022.